In a follow up to my previous posting on the proposed NFA rule change on FIFO, it seems that the more I read the more different interpretations of the FIFO rule I see.

FxSol, for example have an entirely different interpretation to IBFX.  In their view of FIFO, it means that all open trades on a specific pair must be treated as a single position.  Therefore, when you start closing trades because a stop has been hit or profit is being taken you should start closing the first positions first.  This effectively means there is a single stop and profit target for all trades on a single pair.  i.e. all the trades are treated as part of a single position with a single stop and target.

The FXSol interpretation, basically allows you to pyramid and keep your stops and profit targets the same.  This works fine for some strategies, but it does not really work for others which rely on each trade on a currency pair having its own stops and targets.  Some grid traders do this for example.  If you do still need to do this FXSol recommends you transfer your account to Australia.

If you want to see how some other brokers are choosing to interpret the FIFO rule, FX Street has a page covering the variations.  This page provides a list of the various FIFO related press releases from each of the brokers.  For example, GFT claim they have always used FIFO, so there will be no changes for them.

I guess in my case I will wait and see.  Probably of greatest concern for me at the moment is my IBFX account which is a nice broker for trading M5G cyborg with.  So I am waiting to see what IBFX actually implements by the end of the month.  If IBFX is still workable for M5G cyborg, then I will leave it running there.  Otherwise, I think I might move it over to Alapri or FX Pro.

If anyone has experience with FXPro or Alpari and M5G cyborg I would love to hear about it.  Heck drop me a line about what you think you will do with your US accounts.  I am keen to hear.

This is a pretty short posting. I have been looking around at other forex expert adviser review sites and “BestForexEA” is pretty good. The site is a blog written by Casey Lim and he writes pretty well.  If you get a chance check it out.

In my last posting I asked “what if I raised the risk level on M5G cyborg“. Well after 3 weeks and tripling my demo account, it did this:

Before you say “I told you so – never get greedy and fool with the leverage settings”, an interesting thing is I am trading the same system with the same settings (except leverage) using the same broker and both accounts opened the same trades. The difference is my live account closed the same trade for a profit and the demo did not hit the target and found the stop instead. Just goes to show the price feeds for live and demo and the order execution are similar, but quite not the same. This is why you should never really totally trust a demo account forward test.

(Another more superstitous part of me knew that as soon as I published the last post on my blog the account would blow up….)

About 3 weeks ago I decided to take one of my demo accounts that I am running M5G cyborg and push it to the extreme by raising the risk level to something obscene (15% instead of the recommended 2%). This is what happened: a 5K account has tripled. In reality the risk of ruin is extreme for this kind of trading and I would never try this style of trading with money I am not prepared to loose, but it is always fun to see what is possible. I might let it run for a few more weeks and see if it blows up.

I am a chronic trading book buyer and long ago I ran out of space on my bookshelf.  So I can make some space, I am reluctantly selling off some of my books on ebay. If you want to get yourself a bargain (you know how expensive trading books can be ….) why don’t you go onto ebay and make a bid on the following:

• CFD and Stock Trading Books
• Options Trading Books